Conflict and negotiation in the workplace Chapter 11.

Conflict and negotiation in the

workplace

Chapter 11

11-2Copyright © 2013 McGraw-Hill Australia Pty LtdMcShane, Olekalns, Travaglione, Organisational Behaviour, 4e

Learning Objectives11.1 Define conflict and debate the positive and negative

consequences of conflict in the workplace

11.2 Create a diagram of the conflict process model and identify six structural sources of conflict in organisations

11.3 Distinguish task from relationship conflict and describe the three conflict frames and their consequences

11.4 Outline the five strategic approaches to conflict handling and discuss the circumstances in which each would be most appropriate

11.5 Outline the strategies that skilled negotiators use to claim value and create value in negotiations

11.6 Compare and contrast the three types of third-party dispute resolution

11.7 Apply the seven approaches that organisations can take to reduce dysfunctional conflicts


Conflict and Negotiations at QantasIndustrial actions, fleet grounding and urgent government intervention led Qantas to negotiate and settle with employees. But has Qantas won the battle only to lose the war?


Conflict Defined

The process in which one party perceives that its interests are being opposed or negatively affected by another party


Is Conflict Good or Bad?:Pre-1970s View• Historically, experts

viewed conflict as dysfunctional– Undermined relations– Wasted human energy– More job dissatisfaction,

turnover, stress– Less productivity,

information sharing

Level of conflict

Con

flict

out

com

es

Bad

Good

Low High

0


Is Conflict Good or Bad?: 1970s to 1990s View• 1970s to 1990s—belief

in an optimal level of conflict

• Some level of conflict is good because it:– Energises debate– Reexamines

assumptions– Improves

responsiveness to external environment

– Increases team cohesion

Level of conflict

Con

flict

out

com

esBad

Good

Low High

0

Optimal conflict


The Conflict Process


Task vs Relationship Conflict• Task conflict: conflict due to disagreements

about how a task should be accomplished• Relationship conflict: conflict due to

differences in personal values, individuals’ styles, personality

• Team satisfaction and performance decrease as either task or relationship conflict increases

• Difficulty in separating task and relationship conflict


Interests vs Rights-based Frame• Interests-based frame

– Focuses on issue (hard on the problem, soft on the person)

– Resolves differences through problem solving discussion

• Rights-based and power-based frames– Focuses on personal rights or relative power– Low consideration for other party– Resolves differences through threats to protect

rights– Tends to generate relationship conflict and conflict

escalation


Differentiation

Interdependence

• Different values/beliefs• Explains cross-cultural and generational

conflict

• Conflict increases with interdependence• Parties more likely to interfere with each

other

Incompatiblegoals

• One party’s goals perceived to interfere with other’s goals

Structural Sources of Conflict


Ambiguous rules

Communication problems

• Create uncertainty, threaten goals• Without rules, people rely on politics

• Increase stereotyping • Reduce motivation to communicate• Escalate conflict when arrogant

Scarce resources

• Motivates competition for the resource

Structural Sources of Conflict continued


Individual Differences in Conflict• Emotional intelligence

– Regulates emotions better, reducing hostile responses

– View other’s hostility as information, not personal attack

• Personal goals and priorities– Influence best conflict handling style

• Conflict orientation– Win-win orientation—belief that parties will find a

mutually beneficial solution

– Win-lose orientation—belief that one party’s gain is the other’s loss (i.e. fixed pie)


Five Conflict Handling Styles


Conflict Handling Contingencies

• Problem solving– Best when:

Interests are not perfectly opposing Parties have trust/openness Issues are complex

– Problem: other party takes advantage of information

• Forcing– Best when:

You have a deep conviction about your position Quick resolution required Other party would take advantage of cooperation

– Problems: relationship conflict, long-term relations


Conflict Handling Contingencies continued

• Avoiding– Best when:

Conflict is emotionally charged (relationship conflict) Conflict resolution cost is higher than benefits

– Problems: doesn’t resolve conflict, frustration

• Yielding– Best when:

Other party has much more power Issue is much less important to you than other party Value/logic of your position is imperfect

– Problem: increases others’ expectations; imperfect solution


Conflict Handling Contingencies continued

• Compromising– Best when:

Parties have equal power Quick solution is required Parties lack trust/openness

– Problem: sub-optimal solution where mutual gains are possible


Resolving Conflict Through Negotiation

• Negotiation: conflicting parties attempt to resolve their divergent goals by redefining the terms of their interdependence

• Need to consider desired outcomes, tactics, deal design and the scope of the negotiation


Negotiating Fundamentals

• Setting Limits –Target point– Resistance point

• Assessing Power – Consider alternatives

– Skills


Creating and Claiming Value


Managing the Deal • Information• Skills • Concessions • Strategies

– Multi-issue proposals– Conceding on low-value items while getting

concessions on high-value items


Managing Information • Small number of strong arguments• Understand the other negotiator’s needs• Investigative approach to negotiations


Managing the Process • Tactics:

– Delaying or stalling the negotiation – Setting deadlines

• Risk: negotiation turning into an escalating cycle of attack and counterattack

• Ignore personal attacks and refocus on the substantive problem


Beyond the Deal • Considering other aspects in addition to best

possible deal:– Implementation – Social capital – Relationship building– Reputation – Ethical negotiation


Negotiating Ethically

Avoid:• Misrepresentation• False promises• Attacking an opponent’s network• Inappropriate information gathering• Strategic misrepresentation of positive or

negative emotions


Culture and Conflict• Individualism/collectivism

– Focus on harmony versus personal goals

• Power distance– High power distance people signal status in

conflicts

• High/low context style– Low context people communicate more directly,

using logical arguments


Gender and Conflict• During conflict, women (compared to men)

tend to:– Focus more on relationship consequences– Set lower targets– Use fewer alternatives to improve their outcomes– See the process as necessarily competitive

• Women have better outcomes in conflict when parties approach the disagreement collaboratively


Resolving Conflict Through Third-party Intervention


Choosing the Best Third-Party Strategy

• Managers prefer inquisitional strategy, but this is not usually the best approach

• Mediation potentially offers the highest satisfaction with process and outcomes

• Use arbitration when mediation fails


Organisational Approaches to Conflict Resolution

• Emphasising superordinate goals– Emphasise common objective rather than

conflicting sub-goals– Reduce goal incompatibility and differentiation

• Reducing values differences– Remove sources of different values and beliefs

e.g. move employees around to different jobs


Organisational Approaches to Conflict Resolution continued

• Improving communication/understanding– Employees understand and appreciate each

other’s views through communication– Relates to contact hypothesis– Warning: apply communication/understanding

after reducing differentiation

• Reducing interdependence– Divide shared resources– Combine tasks– Use buffers


Organisational Approaches to Conflict Resolution continued• Increasing resources

– Duplicate resources

• Clarifying rules and procedures– Clarify resource distribution

– Change interdependence

• Establishing a positive climate– Norms that encourage openness

– Norms that discourage negative emotions and encourage positive diffusion tactics (e.g. humour)

• Alternative dispute resolution


Summary • Moderate conflict can be effective

• The conflict process model begins with the five structural sources of conflict

• The current perspective on conflict involves distinguishing task from relationship conflict

• There are several conflict-handling styles: problem solving, forcing, avoiding, yielding and compromising. People who use problem solving have a win–win orientation

• Effective negotiators need to engage in both collaboration and competition in order to obtain outcomes

Conflict and negotiation in the

workplace

Chapter 11

Conflict and negotiation in the workplace Chapter 11.

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